This collection of essays in the tradition of monetary circuit theory, also known as monetary theory of production, elaborates on the foundations of modern monetary macroeconomics. It contributes to a new approach to monetary analysis, which provides original insights into the complex fields of money, banking, and finance. The contributors, all prominent experts in these fields, explain a number of economic activities, such as production, consumption, investment, and fixed capital accumulation, in terms of monetary circuits, providing a deeper understanding of the working of contemporary economic systems. This book offers an original analysis of the fundamental factors that led to the current global economic and financial crisis. It will be of great interest to students, postgraduates and scholars in monetary economics, as well as to practitioners and decision makers involved in monetary, banking and financial policies.
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Foreword by Faruk Ulgen
1 Circuit Theory Supplementing Keynes's Genuine Analysis of the Monetary Economy of Production by Claude Gnos 1
2 Bridging the Gap between Monetary Circuit Theory and Post-Keynesian Monetary Theory by Jesper Jespersen 21
3 Monetary Circuit Theory and Money Emissions by Sergio Rossi 36
4 The Existence of Profits with in the Monetary Circuit: Some Unanswered Questions Revisited by Louis-Philippe Rochon 56
5 Saving, Firms' Self-Financing, and Fixed-Capital Formation in the Monetary Circuit by Jean-Luc Bailly 77
6 Finance and the Realization Problem in Rosa Luxemburg: a 'Circuitist' Reappraisal by Riccardo Bellofiote and Marco Passarella 98
7 Money, Capital Turnover, and the Leisure Class: Thorstein Veblen's Tips for a Monetary Theory of Production by Guglielmo Forges Davanzati and Riccardo Realfonzo 116
8 From Wicksell to Keynes? Some Thoughts on the Role of of Central Bank in the Tradition of Monetary Circuit Theory by Stefano Figuera 138
9 The Dynamics of the Monetary Circuit by Steve Keen 161
10 The Financialization of Modern Economies in Monetary Circuit Theory by Marc Pilkington 188
Name Index 217